Question: The manager at Michael's Furniture Store is trying to figure out how much to charge for a chair that just arrived. If the chair was bought at a wholesale price of $146.00 and Michael's Furniture Store marks up all furniture by 85%, at what price should the manager sell the chair?
In order to find the retail price, we must first find the amount of markup. Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. With this knowledge, we can figure out the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $85\%$ is equivalent to $\frac{85}{100}$ which is also equal to $85 \div 100$ $85 \div 100 = 0.85$ Now you have all the information you need to find the amount of markup! $0.85$ $\times$ $$146.00$ $=$ $$124.10$ Since the markup rate is a percentage of the wholesale price that is added to get the retail price, we can find the retail price with the following equation: amount of markup $+$ wholesale price $=$ retail price $$124.10$ $+$ $$146.00$ $=$ $$270.10$ The retail price of the chair should be $$270.10$.